Chinese Government's Support for Web3 and Blockchain Technologies

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Chinese Government's Support for Web3 and Blockchain Technologies

The Chinese government has banned cryptocurrencies since 2019, leading to the collapse of the country's Bitcoin mining industry. However, it is now supporting other blockchain technologies such as NFTs and Decentralized Identity (DID) management systems for various industries. The Ministry of Industry and Information Technology is promoting the use of blockchain and associated technologies, pointing to the development of alternate Chinese platforms like Changan Chain, AntChain, Huawei Cloud Blockchain, and Baidu Super Chain. These platforms are more focused on improving administrative efficiency and are embraced by Chinese businesses, but they are not widely encountered by the public. Despite the ban on cryptocurrency trading, the government has made references to "digital asset management systems," and companies like Ant Group, Baidu, and Huawei are finding commercial opportunities in blockchain technology. However, the restrictions on engaging with mainstream blockchains are limiting the value that circulates in the Chinese economy.